News Summary: SKorea to shakeup state companies

GOODBYE TO ALL THAT: South Korea's government has vowed to tackle massive debts at inefficient state-owned companies by ending lax management and cutting excessive perks for workers.

SNOWBALL: South Korean government debt is relatively low at about 35 percent of gross domestic product. But state companies piled on debt during Lee Myung-bak's 2008-2013 presidency, when they were required to take on big ticket projects for the government. Some, such as utilities, have difficulty boosting revenue because their charges are kept at low levels to control the cost of living.

BUCK STOPS THERE: The Ministry of Finance said the companies should come up with their own measures to reduce debt and chief executives could be sacked if they don't go far enough. The $468 billion owed by state companies is greater than South Korea's government debt.